Bill > HB06878

This bill establishes new limitations on mortgage foreclosure actions and modifications to how undischarged mortgages are treated. Specifically, the legislation creates a time limit for initiating foreclosure proceedings on residential real property, which cannot be commenced after: (1) ten years from the last payment or maturity date (with potential extensions by written instrument), (2) forty years from the mortgage recording date (provided the repayment period does not exceed forty years), or (3) ten years from the date of an uncured default. Additionally, the bill reduces the period for an undischarged mortgage to be considered invalid from twenty to ten years after the property owner has been in undisturbed possession, with the provision that mortgage holders can record a notice to toll this time period for an additional ten years. The notice must include mortgagor names, mortgage recording information, and a statement explaining the mortgage's continued validity. This legislation aims to provide clearer guidelines for mortgage foreclosure timelines and help prevent indefinite mortgage liens on properties where the original debt may have been satisfied or become outdated. The bill is set to take effect on July 1, 2025, giving stakeholders time to prepare for the new regulations.

Business and Industry, Justice

Banking Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB06878&which_year=2025